China's economic growth waned to a five-year low of 7.3% last quarter, raising concerns of a spillover effect on the global economy but falling roughly in line with Chinese leaders' plans for a controlled slowdown.
The third quarter figures, released Tuesday, put China on course for annual growth somewhat lower than the 7.5% targeted by leaders, though they have indicated there is wiggle-room in their plan. The world's number-two economy grew 7.5% from a year earlier in the previous quarter and 7.4% in the first quarter.
Communist leaders are trying to steer China toward growth based on domestic consumption instead of over-reliance on trade and investment. But the slowdown comes with the risk of politically dangerous job losses and policymakers bolstered growth in the second quarter with mini-stimulus measures.
Employment, however, remained strong through the third quarter and the service industries such as retailing that leaders want to promote have done well this year despite the downturn, which has been focused largely in the property market, said one expert.
A further slowdown in China's economy would likely cause some damage to the U.S. economy, the world's largest, as well as commodity producers such as Australia, Indonesia and Brazil that have grown accustomed to strong Chinese demand.
Still, the third-quarter figure beat expectations by many economists of about 7.2%, or lower, which could have increased calls for a new round of major stimulus measures that the government can ill afford after a debt fueled investment binge in response to the 2009 global recession. Asian stock markets took the data largely in stride, ending the day with unspectacular gains or losses.
